New Delhi, May 12 -- Non-resident Indians (NRIs) have the option to transfer their overseas earnings to India through non-resident external (NRE) accounts to manage investments, family expenses and savings in the country. However, a common question arise over whether salary earned abroad becomes taxable in India once it is remitted to an Indian bank account.

An NRE (Non-Resident External) account is a rupee-denominated bank account, in which deposits are made in foreign currency and converted to Indian rupees for withdrawal purposes. These accounts can be opened as a savings, current, recurring, or fixed deposit account.

A few benefits are extended to non-resident individuals under Indian tax provisions. Broadly, global income of a non-...